S’pore start-up raises RM2.5b for data centres

Beijing • Goldman Sachs Group Inc-backed AirTrunk has raised A$850 million (RM2.53 billion) to fund the expansion of its two Australian data centres and a move into Asia to take advantage of a growing cloud computing market.

Deutsche Bank AG underwrote a senior secured loan that will eventually be syndicated to a broader group of lenders, the Singapore-based start-up said in a statement yesterday. Its latest financing comes on top of a A$150 million six-year term loan from ING Groep NV and Natixis SA secured in February 2017, plus an unspecified amount of funding from Goldman Sachs and an arm of private equity giant TPG Capital.

AirTrunk provides its clients with the physical space, Internet connections, power and cooling for their own servers. Research firm IDC estimates public cloud demand in the Asia Pacific region excluding Japan will hit US$47 billion (RM192.74 billion) by 2020.

The bulk of the money raised in loans, about A$750 million, will be spent expanding its current facilities in Sydney and Melbourne, founder Robin Khuda said. AirTrunk, which measures inventory in terms of power capacity, will have 174MW within 12 months, of which 100MW will be built up and ready for customers.

The remainder of the money raised will go toward expanding into Asia with Singapore, Tokyo and Hong Kong key priorities. Facilities in the region are expected to be online by end-2020. — Bloomberg